July 12, 2024

Home Prices Increased to New Record Highs

A recent report reveals that home prices in various markets nationwide are increasing, hitting new peaks. After a period of deceleration lasting over a year, prices experienced a growth of 0.8 percent in June. According to the report from Black Knight, this increase has led to record-setting price levels in approximately 60 percent of the primary housing markets in the nation.

The Midwest and northeast regions of the U.S. experienced the highest annual price growth, with notable increases in Hartford, Conn., Seattle, and San Jose. However, in Austin, which saw significant growth during the pandemic, median home prices dropped notably below their peak in 2022, as highlighted in the report.

Andy Walden, the Black Knight Vice President of Enterprise Research, said, “We’ve been noting for some months that the recent rate of home price gains would have a lagging, but significant, impact on the annual rate of appreciation. Well, June marked that inflection point. Not only has the Black Knight HPI reached a new record high – on both seasonally adjusted and non-adjusted bases – but 60% of major markets have done so as well.” 

Rising home prices, driven by a shortage of homes on the market, have allowed homeowners to recover a significant portion of the equity they lost during reduced demand due to high mortgage rates. In June, the total equity surpassed $16 trillion, providing an average equity amount of $199,000 for mortgage holders. This is an improvement from the previous quarter but a decrease from the $207,000 recorded in the same period last year.

“Rising home prices have boosted homeowner equity levels as well, which had been retreating from their 2022 highs not very long ago,” Walden continued. “In fact, despite total outstanding mortgage debt topping $13T for the first time in history, much of the decline in equity we’d tracked since last year’s peak has since been recovered.”

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